P80problems11exami
ethefollowi
gsummaryoftheUSbala
ceof，payme
tsfor2000i
＄billio
a
dfilli
thebla
ke
tries
CreditsCurre
tAccou
t1Exports11Mercha
dise12Services13Factorsi
come2Imports21Mercha
dise22Services23Factorsi
come3U
ilateraltra
sferBala
ceo
curre
taccou
tCapitalAccou
t4Directi
vestme
t5Portfolioi
vestme
t51Equitysecurities52Debtsecurities6Otheri
vestme
tBala
ceo
capitalaccou
t7Statisticaldiscrepa
ciesOverallbala
ceOfficialReserveAccou
t141864774862908835290180918122443217073676864394446915244124949974252030327Debits
1024
2876847459193852807426264793913489203
03
Mercha
dise1809182170736768122443Bala
ceo
curre
taccou
t1418641809181024643944469Bala
ceo
capitalaccou
t28768474591938528074262641524412494997425203032779391Statisticaldiscrepa
cies03444697939134892
P136
problem8
Aba
kisquoti
gthefollowi
gexcha
geratesagai
stthedollarfortheSwissfra
ca
dtheAustralia
dollar
fSFr1596070A1722535A
Australia
firmaskstheba
kfora
ASFrquoteWhatcrossratewouldtheba
kquote
1BidrateforASFrBidrateforAOfferedrateforSFr①OfferedSFrbuyASFr115970②Co
verti
toA11A17225③BidrateforASFr
10926617225A1SFr10786①2OfferedrateforASFrBidrateforSFr
SFr1A15970×
OfferedrateforA①offeredAbuy11A17235②co
verti
toSFrSFr115960③OfferedrateforASFr1SFr1A×159601926017235A1SFr10799②I
co
clusio
a
Australia
firmasktheba
kfora
ASFrquoteASFr1078699
P136
problems11
11assumeyouaretraderwithDeutscheba
kfromthequotescree
o
yearcomputertermi
alyou
oticethatDresd
erba
kisquoti
g07927＄100a
dCreditSuisseisofferi
g
fSF11806＄100Youlear
thatUBSismaki
gadirectmarketbetwee
theSwissfra
ca
dtheeurowithacurre
tSFquoteof6395showhowyouca
makeatria
gulararbitrageprofitbytradi
gatthesepricesIg
orebidaskspreadsforthisproblemassumeyouhave5000000withwhichtoco
ductthearbitrageWhathappe
sifyoui
itiallyselldollarsforSwissfra
csWhatSFpriceswillelimi
atetria
gulararbitrage
sell5000000toDresd
erBa
kat07627100Thistradewouldyield38135005000000x7627priceof06395SF100yieldi
gSF596325338135006395CreditSuissefor5051036SF596325311806arbitrageprofitof51036IftheDeutscheBa
ktraderi
itiallysold5000000forSwissfra
csthetradewouldyieldSF59030005000000x11806TheSwissfra
cswouldi
tur
betradedforeurostoUBSfor3774969SF5903000x6395Theeuroswouldberesoldtofor4r